Business owners and managers need to determine the current worth of certain assets from time to time, even if there are no plans to sell them. For example, you might be required to state the market value of company-owned real estate or vehicles for tax purposes. When an asset is encumbered by a liability, you may have to distinguish between gross fair market value and fair market value.

Gross Versus Net Value

Fair market value is the price an asset would bring if it were sold on a voluntary basis, meaning neither buyer nor seller has an obligation to make the exchange. Gross fair market value is the fair market value of an asset before allowing for any liabilities such as loans, taxes or liens. Suppose a warehouse has a gross fair market value of $250,000. If the property is collateral for a $100,000 business loan, the net fair market value of the asset becomes $150,000.

About the Author

Based in Atlanta, Georgia, W D Adkins has been writing professionally since 2008. He writes about business, personal finance and careers. Adkins holds master's degrees in history and sociology from Georgia State University. He became a member of the Society of Professional Journalists in 2009.